If they make the iPad smaller and the iPhone bigger we'll end up with two products exactly the same size with one that makes phone calls and one that doesn't. Hang don't we already have that... iPod touch.
Crazy.

I agree Jamie. I was looking at some of the larger screen phones yesterday and while the iPhone screen does look small, I don't want a larger, less pocketable form factor. But then I don't play many games on it and I can understand the desire for more screen real estate for that reason. Apart from an ereader I don't see the point in a 7" tablet. I reckon 10" is the minimum for web surfing.

"I don't believe there's a power in the 'verse that can stop Kaylee from being cheerful...

...Sometimes you just wanna duct tape her mouth and dump her in the hold for a month."

Today, most of the people expect (demand) more from their mobile phone. It should have large display to watch movies and play games, need more processor power to work very fast, large memory space to bag as much apps and musics and movies and books and so many things need not to say, need high MP camera (better if it has frontal also). Manufacturers have to satisfy all kinds of consumers. Present market demands larger display, so they are.

I agree Jamie. I was looking at some of the larger screen phones yesterday and while the iPhone screen does look small, I don't want a larger, less pocketable form factor. But then I don't play many games on it and I can understand the desire for more screen real estate for that reason. Apart from an ereader I don't see the point in a 7" tablet. I reckon 10" is the minimum for web surfing.

I think the current iPhone could be a bit bigger and still fit into most pockets.

The preference for a 7" tablet is, outside of a few specialty application, solely based on price. At $250 (which is a price that has been mentioned elsewhere) it represents a significant saving over the current base model iPad. A small tablet really has to be around this price as the Kindle Fire is $199USD.

As much as I would be in the market for a couple of 7" iPads I can't see Apple going for it. Firstly, Amazon are reportedly selling the Fire at a loss, something I don't think Apple would be interested in. Secondly, the 7" iPad pricing has to be spot on. It has to be close enough to other tablets to really compete. But it can't undercut the full-size iPad by too much. And then if it is priced too closely to the full-sized iPad then it won't sell.

I think the rumours of a 4" 16x9 format iPhone are promising. A bigger display without having to sacrifice phone size. There are definitely ways of easily letting current resolutions play nicely with it without developers having to scramble to rewrite apps.

"I don't believe there's a power in the 'verse that can stop Kaylee from being cheerful...

...Sometimes you just wanna duct tape her mouth and dump her in the hold for a month."